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Simple English definitions for legal terms
dischargeability proceeding
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A quick definition of dischargeability proceeding:
Dischargeability proceeding: A legal process in bankruptcy court where a judge decides if a debt can be erased (discharged) or if it must still be paid. The judge will review the debt and any exceptions to discharge, such as debts incurred through fraud or intentional wrongdoing.
A more thorough explanation:
DISCHARGEABILITY PROCEEDING
A dischargeability proceeding is a legal hearing that determines whether a debt can be eliminated through bankruptcy or if it is exempt from discharge. This process is governed by the United States Bankruptcy Code.
Example 1: John files for bankruptcy and includes his credit card debt in his petition. The credit card company objects, claiming that John made fraudulent charges. A dischargeability proceeding is held to determine whether the debt can be discharged or if it falls under an exception to discharge.
Example 2: Mary files for bankruptcy and includes her student loan debt in her petition. A dischargeability proceeding is held to determine whether the debt can be discharged or if it is exempt from discharge due to the "undue hardship" provision of the Bankruptcy Code.
A dischargeability proceeding is a legal process that determines whether a debt can be eliminated through bankruptcy or if it is exempt from discharge. This process is important because it can impact the debtor's ability to obtain a fresh start after bankruptcy. The examples illustrate how a dischargeability proceeding can be used to determine whether a debt can be discharged or if it falls under an exception to discharge.